UniCredit inks sale of bad loans to Pimco, Fortress

Business7/17/2017, 9:54 AM

EPA / DANIEL DAL ZENNARO

In accordance to an initial deal reached in December, UniCredit SpA took another step in deleveraging its noncore portfolio by reaching definitive agreements to sell €17.7 billion in nonperforming loans to Pacific Investment Management Company Llc (Pimco) and Fortress Investment Group Llc. The statement issued on Monday notes securitization vehicles will be registered with the Bank of Italy, while asset-backed security (ABS) notes will be issued by the end of the month.

The implementation of the first phase of the so-called FINO project for overhauling the banking giant based in Milan will be followed by an assessment whether to opt for public rating to the issued senior and mezzanine notes and sell the remaining stake, to take it below 20%, the lender said. UniCredit will pencil in a rise in the CET1 capital ratio by 10 basis points from the transactions. The bad loan portfolio is referred to as Sofferenze.